Startup City Magazine
A monthly magazine for business startups and young entrepreneurs.

Major Factors to Consider Before Buying an ERP Software

0

Major Factors to Consider Before Buying an ERP Software

Industry 4.0 has brought about rapid transformations and digital trends. It has also paved the path for organizations to reap the rewards of successful ERP Implementations. ERP Software is comprehensive business management software and it supports a company to manage all the departments and track everything in business.  It also measures and presumes the benefit that an organization will get with the help of information collected and details provided to it.

With process and data automation, integration, enhanced efficiencies, and many other advantages, the question is no longer whether to invest in ERP but rather how best to go about it.

We all appreciate that an ERP system is a large software purchase that costs time, effort and money. So we will make sure that this investment pays dividends, immediately and in the coming days?

Here are some major points to keep in mind;

  • Review industry Trends- What direction is your industry growing: what are the major innovations like digitizing or 3-D printing, going to affect your company?

You have decided to buy ERP software because you do not want to be left behind, become a leading player in the competitive market, or lose a customer. But you will also have to review at how your industry is progressing so that your software selection criteria will not only enable you to keep up but stay ahead of the herd.

  • Plan your Business Strategy- How will your company adapt to and cope with the developments your industry is going through: have you considered changing how you do things? You already have seen the industry dynamics and how you wish to respond, now you need to work to translate that into some specific actions that will completely change the way your business works.
  • Discuss with Your Customer and Suppliers- What would fascinate your pontifical customer to work with you? You know well which customers and suppliers will provide you a thoughtful and honest answer. They hold some perspectives and insights that you do not have; they are also the people who will assure your bright future and continuous success.
  • Get Professional’s Advice- Take help from people who are professional and have enough knowledge of ERP Software. Try to get an idea from them about the kind of ERP that will suit your business and will bring multiple advantages for your type of work. When you are fully sure about the software and its details, then go ahead with shortlisting as you need to be aware of the questions that you are supposed to ask the vendors so you can get out all the information from them. In case, you are not aware of the software there is no way that you will be aware of what you are looking for either. Hence a proper knowledge about ERP solutions from a professional is a vital factor before you go to any vendor and buy ERP Software.
  • Discussions- Talk to colleagues in other companies who have been through the same process. Suppose, you have not bought or sold a house, you will ask a few friends for tips, the same thing applies when you are going to buy an ERP. Even if you have already an ERP system, years have passed, things have changed, so do not assume your previous selection process will work now also. Try to get guidance from colleagues and avoid some common mistakes people usually make while buying the software.
  • Engage Your Team- Before making your final decision, talk to company staff and get their buy-in. It is now a known fact that the success of an ERP process completely depends on how your team works on it. The earlier you discuss with your staff, share the vision and directions and get their side. The greater the change your ERP project will be successful.
  • Review Your Business Processes- Check how things get done in your business. You may think that you know well how the business operation, but until you examine how people actually do their work, you will not have the right foundation on which to make improvements or innovations to business processes.
  • Keep Eyes on Your Performance Measure- How do you perform against and what you want to do with any innovation. Analyze your business process properly, review how do you perform on those processes? How you can improve, or change and make your overall performance better?
  • Make a Short-list- Check everything you have learned from the previous steps. You now have a proper idea of what the major areas of the business that need modification. It will direct you on how you select an ERP solution.
  • Fix Timeline- It is almost impossible to get all the information to make a final set of completion dates. Here, the best way is to start thinking about timelines. In the words of Eisenhower, “I have always found that plans are useless, but planning is indispensable.”
  • Create Executive Committed- Executive commitment means staying involved during the implementation, and more importantly, once the systems are being used.

Major Factors to Consider Before Go with Any ERP Vendor

Check all the Options

There are a lot of options available in the market when you decide to buy an ERP solution. So do not limit yourself with just a few, find out and try to read more and more about ERP software and find out the features of each ERP and read their reviews.

There might be a lot of ERP software that will fulfill your business needs, but check different options and select the best ERP solution for your business. Look at the drawback of each option, compare them and then go ahead with your final choice.

Long-term Continuity

 A strong track record of success speaks for itself. Apart from the reasonable expectation of robust industry-proven software and excellent customer service, you can think that a reputable and well-established ERP provider is here for the long haul, and holds a great interest in your current and future growth.

User Friendly

Read and scrutinize deeply about flexibility. When you finally buy any ERP Software you would want to use it as fast as possible and therefore make sure that it is user-friendly and your team is able to adapt to it quickly. It is not possible that you will spend a year training your employees how to use the software, it should take only a maximum of two months, by this time employees should operate it entirely with ease. Therefore, make sure that it is easy for adopting and operating so you use it as soon as possible and can utilize its advantages maximum. Hence software than customizing is the best ERP Software for your business.

Budget

The budget is a game player in buying any software. It plays a vital role when you have decided to shortlist any software for selection as you cannot just go ahead with software that claims to be on the top of the market and spend everything on the management and have a shortage in the budget for your business. Try to calculate all the possible expenditures that will go it purchasing and everything that comes with it including customization, monthly revenues and more.

Free Trials

When you are considering buying ERP software, think to take a trial of the software. It makes everything easier for you. You can easily learn about the function of software when you actually use it and check on your own. All the ERP Software provides free trial on their site therefore it is safer to take a free trial before you finally buy the product. Read about it, take advice and learn about it from a vendor is not enough unless you actually buy it out. It will help you to know how user-friendly your software is, how it is management, the amount of intelligence it has and also the amount of customization it requires.

Buying an ERP Software is a big investment. Think, review and buy the best solution that tackles all your business needs.

You might also like
Comments
Loading...